DMO Offers FGN Savings Bonds for Subscription at N1,000/Unit
The Debt Management Office (DMO) has listed two new Federal Government of Nigeria (FGN) savings bonds for subscription at N1,000 per unit, the agency said in a statement on its website.
According to the DMO, the first one is a two-year savings bond maturing on June 15, 2024, at an interest rate of 8.20 per cent per annum. The second is a three-year savings bond due maturing on June 15, 2025, at a 9.20 per cent per annum interest rate.
“Offer opens on Monday, June 6 and closes on Friday, June 10; settlement date is June 15.
“They are offered at N1,000 per unit, subject to a minimum subscription of N5000, and in multiples of N1000 thereafter, subject to a maximum subscription of N50 million. READ: DMO Offers FGN Savings Bonds for Subscription
“Interest payment will be made quarterly, while total sum invested (bullet repayment) will be made on the maturity date,’’ the DMO stated. It added that the FGN bonds qualify as securities in which trustees could invest under the Trustee Investment Act.
DMO hints that the instruments qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act; for Tax Exemption and for Pension Funds, among others.
The savings bonds are listed on The Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation in banks.
“FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,’’ it also stated.
The DMO urged interested investors to contact stock broking firms or visit its website: www.dmo.gov.ng. # DMO Offers FGN Savings Bonds for Subscription at N1,000/Unit
